EOFY sales critical for Australian retailers as 1/3 of Aussies ONLY shop sales
- Written by Brendan Straw, Country Manager for ShopFully Australia
The End-of-Financial-Year (EOFY) sales have emerged as a significant event for Australian retailers. These sales periods are more than an opportunity for shoppers to get the best ‘bang for their buck’; they represent a moment for retailers to boost their revenue and clear out inventory, something stores may be struggling to do in today's economic climate. With the cost-of-living crisis affecting daily lives and increasing everyday expenses, these sales are becoming essential for managing household budgets. Sales periods are fostering a mutually beneficial relationship between consumers and retailers.
New research from ShopFully, which includes insights from over 500 Australian consumers, reveals a broader trend of increasing reliance on sales and promotions, with one-third (30%) of Aussies exclusively shopping sales, making EOFY sales a critical time for both shoppers and retailers. This growing dependence on sales is becoming essential for retailers to maintain their profitability and manage cash flow effectively. This year, a majority (89%) of Australian shoppers are likely to participate in the EOFY sales, with 69% indicating they would take advantage of similar annual sales if available earlier - presenting an immense opportunity for retailers to increase sales and capture consumer interest ahead of the traditional buying periods.
With almost half (48%) of Australian consumers planning to stock up on essential products during the EOFY sales, it’s plausible to believe households are strategically using sales like this as a cost-saving strategy. This aligns with our survey conducted in the first half of 2024, which found 76% of consumers expected to increase their spending on essentials, leaving less of their yearly budget for non-necessary purchases.
These insights highlight the evolving dynamics of consumer behaviour in response to current economic challenges. Shoppers are not deterred from making purchases but are instead making them in more cost-efficient ways. Significant purchases are still being made, but more strategically, with more than half (56%) of consumers delaying out-of-budget purchases until the EOFY sales period. Retailers can capitalise on this by offering more frequent promotions or bringing forward sales dates to maintain and even boost revenue.
Considering accessibility is also an important factor. Retailers can take advantage of annual sale moments by engaging shoppers through both digital and physical promotion touchpoints, as we know this omnichannel approach is essential for over half (56%) of shoppers.
By creating a mutually beneficial relationship with consumers and catering to their needs, retailers can enhance customer engagement and boost revenue during critical sales periods. This strategy helps consumers manage their budgets while ensuring retailers maintain financial stability and thrive in a challenging economy.
